Estee Lauder 2011 Annual Report Download - page 154

152 THE EST{E LAUDER COMPANIES INC.
A reconciliation between the numerators and denominators of the basic and diluted EPS computations is as follows:
YEAR ENDED JUNE 30 2011 2010 2009
(In millions, except per share data)
Numerator:
Net earnings attributable to The Estée Lauder Companies Inc. $700.8 $478.3 $218.4
Denominator:
Weighted average common shares outstanding — Basic 197.0 197.7 196.3
Effect of dilutive stock options 3.2 2.2 0.8
Effect of RSUs, PSUs and MSU 1.0 0.8 0.6
Weighted average common shares outstanding — Diluted 201.2 200.7 197.7
Net earnings attributable to The Estée Lauder Companies Inc.
per common share:
Basic $3.56 $2.42 $1.11
Diluted 3.48 2.38 1.10
As of June 30, 2011 and 2010, outstanding stock options that were not included in the computation of diluted EPS
because their inclusion would be anti-dilutive were de minimis. As of June 30, 2009, outstanding stock options that
were not included in the computation of diluted EPS because their inclusion would be anti-dilutive were 18.7 million.
As of June 30, 2011, 2010 and 2009, 0.3 million, 0.3 million and 0.2 million, respectively, of PSUs have been excluded
from the calculation of diluted EPS because the number of shares ultimately issued is contingent on the achievement of
certain performance targets of the Company, as discussed in Note 16— Stock Programs.
NOTE 18 — ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
The components of Accumulated OCI (“AOCI”) included in the accompanying consolidated balance sheets consist of
the following:
YEAR ENDED JUNE 30 2011 2010 2009
(In millions)
Net unrealized investment gains, beginning of year $ 0.2 $ (0.2) $ 0.3
Unrealized investment gains (losses) 0.4 0.6 (0.8)
Benefit (provision) for deferred income taxes (0.1) (0.2) 0.3
Net unrealized investment gains, end of year 0.5 0.2 (0.2)
Net derivative instruments, beginning of year 14.3 1.5 7.9
Gain (loss) on derivative instruments (38.0) (0.2) 16.5
Benefit (provision) for deferred income taxes on derivative instruments 13.4 (0.1) (5.8)
Reclassification to earnings during the year:
Foreign currency forward and option contracts 15.1 20.3 (26.1)
Settled interest rate-related derivatives (0.3) (0.2) (0.3)
Benefit (provision) for deferred income taxes on reclassification (5.2) (7.0) 9.3
Net derivative instruments, end of year (0.7) 14.3 1.5
Net pension and post-retirement adjustments, beginning of year (217.6) (190.7) (108.8)
Changes in plan assets and benefit obligations:
Net actuarial gains (losses) recognized 30.7 (65.6) (138.5)
Net prior service credit (cost) recognized (10.6) 2.6 (0.7)
Translation adjustments (16.4) 6.5 8.7
Amortization of amounts included in net periodic benefit cost:
Net actuarial (gains) losses 26.3 9.3 4.1
Net prior service cost (credit) 3.1 3.1 3.0
Net transition asset (obligation) — — —
Benefit (provision) for deferred income taxes (14.5) 17.2 41.5
Net pension and post-retirement adjustments, end of year (199.0) (217.6) (190.7)
Cumulative translation adjustments, beginning of year 6.4 72.3 211.4
Translation adjustments 213.2 (65.5) (138.4)
Benefit (provision) for deferred income taxes (2.7) (0.4) (0.7)
Cumulative translation adjustments, end of year 216.9 6.4 72.3
Accumulated other comprehensive income (loss) $ 17.7 $(196.7) $(117.1)